After the Tribune Company filed its fifth request for an extension to file a bankruptcy reorganization plan without interference, some of the company's biggest creditors complained that it was unfair to be given only three business days to object to the company's extension request. Citing "serious concerns" about the extension, the lenders said Tribune was [...]
General Growth Properties Inc., announced that it has reached an agreement with Brookfield Asset Management Inc., Pershing Square Capital Management LP and Fairholme Capital Management LLC, to reorganize the second largest U.S. mall owner by infusing $6.55 billion into the company. Brookfield, Pershing Square and Fairholme will commit $6.55 billion of new equity capital at [...]
Unsecured Creditors and Chapter 11 Bankruptcy Traditionally, Chapter 11 bankruptcy left unsecured creditors with at least some equity in the reorganized company or part of the proceeds of a sale if nothing else. However, due to the recession and the massive amounts of losses hitting debtor companies and creditors alike, many unsecured creditors are being [...]
While most debtor-companies in Chapter 11 bankruptcy depend on financing from banks to fund their bankruptcy exits, there is an increase in the number of companies turning to high-yield bonds (junk bonds) to fund their bankruptcy exit. Junk bond sales have surged to records every month since December as companies contend with "wall of maturity" [...]
Car Loans and Bankruptcy If you're filing for bankruptcy, it's important to understand that car loans are treated differently in Chapter 11 bankruptcy than they are in Chapter 13 bankruptcy . If you're a high income debtor you may need to file Chapter 11 bankruptcy; but one of the benefits of Chapter 11 bankruptcy is [...]
Chapter 11 Bankruptcy Means Test One of the benefits of filing Chapter 11 bankruptcy is that the debtor's disposable income is not calculated using the Means Test , the same test which is required for Chapter 13 bankruptcy . Arguably, the biggest change to the bankruptcy code was the incorporation of the Means Test for [...]
Six Flags filed Chapter 11 bankruptcy in June listing assets of $2.9 billion against debt totaling $3.4 billion, including an $850 million secured term loan and a $243 million revolving credit. But the fight for control of the bankrupt amusement park may end in a Chapter 11 bankruptcy settlement agreement if the plan is approved [...]
Yale University is being sued by the court-appointed official in charge of winding down the bankruptcy case of BearingPoint Inc. The lawsuit seeks to recover $6 million the consulting firm paid to Yale University to endow a chair in management and name facilities at the university. The donations were part of a $30 million, seven-year [...]
The Trump casino bankruptcy in winding down to a close as two opposing parties battle to gain control of the bankrupt company. Billionaire Carl Icahn and banker Andy Beal are at a standoff against bondholders as both parties struggle for control over the Trump casinos and present their bankruptcy exit plans to bankruptcy Judge Judith [...]
Cadillac, the luxury brand of General Motors Co. recently announced that it is distancing itself from the Detroit-based automaker to avoid the "stigma" of the parent company's $50 billion U.S.-backed bankruptcy last year. Cadillac is erasing the GM name from its marketing and dealerships, changing e-mail addresses to @cadillac.com from @gm.com and exiting companywide promotions [...]